In the last trading session, Dick’s Sporting Goods (DKS) closed at $101.23, a move of +1.5% on the previous day. That move surpassed the S&P 500’s 0.48% gain on the day. At the same time, the Dow rose 0.2% and the tech-heavy Nasdaq lost 0.01%.
As of today, the sporting goods retailer’s shares are down 2.83% over the past month. During the same period, the retail and wholesale sector lost 10.21%, while the S&P 500 lost 8.48%.
Dick’s Sporting Goods will look to show strength as it nears its next earnings release, which is expected on May 25, 2022. In this report, analysts expect Dick’s Sporting Goods to report earnings of $2.42 per share. This would represent a 36.15% decrease from the previous year. Meanwhile, our most recent consensus estimate calls for revenue of $2.63 billion, down 10.01% from the year-ago quarter.
Looking ahead to the full year, our Zacks Consensus estimates have analysts expecting earnings of $12.62 per share on sales of $12.15 billion. These totals would represent a year-on-year change of -19.62% and -1.19%, respectively.
Any recent changes in analyst estimates for Dick’s Sporting Goods should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive estimate revisions reflect analysts’ optimism about the company’s business and profitability.
Our research shows that these estimate changes correlate directly with short-term stock prices. Investors can benefit from this by using the Zacks Rank. This model accounts for these estimate changes and provides a simple, actionable scoring system.
The Zacks Rank system, ranging from #1 (strong buy) to #5 (strong sell), has an impressive, peer-reviewed track record of outperformance, with the #1 stocks posting average annual returns since 1988 +25% The Zacks Consensus EPS estimate is down 0.21% over the past month. Dick’s Sporting Goods currently has a Zacks Rank of #3 (Hold).
The story goes on
In terms of valuation, Dick’s Sporting Goods currently trades at a forward P/E of 7.9. For comparison, the industry has an average forward P/E of 12.1, meaning Dick’s Sporting Goods is trading at a discount to the group.
Investors should also note that DKS currently has a PEG ratio of 1.58. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. Retail – Other stocks hold an average PEG ratio of 1.28 based on yesterday’s close.
The Retail – Other industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 81, placing it in the top 33% of all 250+ industries.
The Zacks Industry Rank measures the strength of each of our industry groups by measuring the average Zacks Rank of each stock within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all these stock movement metrics and many more at Zacks.com.
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DICK’S Sporting Goods, Inc. (DKS): Free Stock Research Report
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